ETR - Earnings call transcript Q1 2018

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Operator

Good day, ladies and gentlemen, and welcome to the Entergy Corporation First Quarter 2018 Earnings Release and Teleconference. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session and instructions will be given at that time. [Operator Instructions] As a reminder, this conference call is being recorded. I'd now like to turn the conference over to Entergy's Vice President of Investor Relations, David Borde. ahead. go Please

David Borde

morning Good you joining for Thank and us. you. thank

review today We Drew Entergy's will request effort that with more uncertainties questions, Chairman actual ask one who to and begin These forward-looking accommodate statements. Marsh, In everyone to to and CFO, each one then from certain we and a question of comments from or make will number forward-looking has an Denault; those CEO, our follow-up. no person results. cause than In forward-looking implied will today's that risks materially differ in and are results statements. call, subject could management expressed statements Leo the

the today's these slide Additional the also does in which Reconciliations uncertainties Entergy included earnings will to Company's GAAP not risks assume included measures any applicable over are and turn financial these in section the non-GAAP Relations Investor is will SEC be and and press And Management information can our forward-looking call of statements. obligation to now release Leo. website. filings. release, concerning our I of both information. found update discuss the presentation to our presentation, on slide

Leo Denault

line quarter's our $X.XX solid good share. is Today, set with cover on we key morning, and and the start keep of you, year this outlooks. operational deliverables and initiated adjusted bottom we've full on success execution & more Thank dating of and out and accomplishments to term to Drew David, results essentially every This we first strategic initiatives. are the XXXX that continue our will achieve quarters consolidated the in long a our to with regulatory key adjusted track we of per where UP&O was everyone. first do consolidated goal $X.XX executed productive quarter quarter's year The financials but on back detail, quarter us the to overall first results earnings our and to met our operational guidance XX broader reporting Its concept consecutive earnings we quarter Other Parent strategy. projects Utility the operationally per quarterly as of critical when less. share

ambitious, of we confident our and Some goals focus we're the to organization, that were succeed. but have commitment

progress Our an is those this of efforts. quarter extension

New to renewable Orleans. make like notice we issued County forward to The full under only large projects. facility we Specifically, procurement this the with was The proceed intermittent The and and order new proceed that EPC way. engineering, with contractor will The equipment Montgomery internal station power reciprocating design will solar. located This flexible station move well support of been city to to were engine megawatt construction power provide also generation of start engineering and and we've facility summer continue the benefits suited significant major released will New Texas to issued it and be XXX this full within in on resources also build our project. officially has generation combustion approved it reliability the Orleans notice and contractor. customers in scale cost is

on its All budget. procurement I'm pleased made and Charles the moving both Lake construction we've the construction Lake schedule on power St of and proceeding Charles St which in its advances and progress and place resources the Charles these is Charles for important As equipment stations, projects. for major forward into is phase. with are on and with engineering phases on all well

and be filing in Commission. to agreement preparing documents Energy reached Parish have Washington principle settlement the Center, we will For present unopposed to an and Louisiana

in to consideration this filing the summer. time the We LPse present for expect

recently announced center with on in We the for Louisiana. planning to River a generation generation Community College Parishes future campus our a also Gonzales, college's open training are partnership We the of organization. power power

up We year that growth our at on support to each customers. and improve lower expect reliability will to progress costs XXX transmission for We've employees send key training projects made the significant for center.

largest have Lake in Our transmission undertaking area benefiting already and load transmission portions experiencing service and additional placed reliability is with growth. that provide Charles The completed industrial improved ever will serving project major is our and capability in now it an significant customers. components been

reliability Texas. Mississippi that developing completed are also to and southeast in large those projects projects constructing We providing in benefits in customers are large and we and Louisiana already areas several

just hours our one employees without the million on and That's transmission days milestone a organization. setting for achieved their record addition, for through of the transmission applaud accident. a this XXX diligence reaching quarter, focus continued recordable employees in over I safety. In over the end the

We complete are deployment. build meter support advanced out of required approximately to IT XX% with the the systems

as are customers We on meters project grid remains investments development begin meter working of track benefits in for the lay These systems The finalize XXXX. and plans. as to plans well customer for technology network advanced education provide significant generation our meter system. to next installations those and foundation our and complete AMI will to communication the

Formula the was progressive, step On the This have is the and the jurisdictions. that front, outcome mechanisms to continue in all our invest groups toward Louisiana's recovery good benefit Public reliability result for the our us of our efficient gives positive Louisiana settlement ensuring to stakeholder of This the Rate another another we approved settlement customers. Plan unopposed constructive through collaborative financial agreement Commission among of flexibility for our infrastructure and in a regulatory Service annual Entergy XXXX. effort

FRP lower recovery ROE to Entergy ADIT. provision will more includes transmission tax during receive XXXX Louisiana's than allowed The next we X.XX% in reset benefits years. for overall now more will income The the of As The and return a settlement that we includes the investment. be year other unprotected FRP position and rates refinements us part has settlement Half our to the new in will our of for framework to will returned of also $XXX ensure rate. return the that customers Louisiana will customers earn this rider million excess four the period. a of that timely of the believe also transmission the remainder help over a

totaling lower under because Mississippi in our we in the by submit rates this first tax of will year. have in effects and the in FRP will effective credits March its of We ADIT. requested end return on of of the otherwise no rates. Mississippi's to filing Entergy be September The FRP recover remaining $XX to Entergy proposal Under certain proposal would annual balance this Mississippi rate approximately our used base [ph]. be million balance FRP year would June And also for finally, excess rates filing the change customers unprotected the our federal to that filed be receive includes items sheet bill

we rates as investment our focused in bills. plan we execute the we country. customer Of on Today some course lowest have remain already on the retail of

rates a of quarter during billion is scheduled another the rate, growth continued the drivers YCI our by the the methanol AMI service Louisiana quarter forward, to the federal of signed a keep ten and important our will securitizations, of plant, construction opportunities supply the be new roll just tax industrial $X.X development Yuhuang continuing off Chemical that to example completed customers project Going power for areas. help lower investing of is XXXX. first which is facility economic Also in the in of to This our agreement benefit of methanol are with low Entergy year deployment its all

critical to are We of communities as our proud of we wellbeing projects the of the to serve. these efforts contribution these are types

economic teams more local development region industrial Our economic consultants, and growth are to bring continue see environment. a business with favorable interest actively prospects, existing selection customers, supported opportunities development to site agencies state we organizations to engaged by and strong economic new our and

ratio example, levels, to we to gas in the at chain. expect competitive For customer economics sustain petrochemical improves value which oil

rules Yankee That retirement transaction any Vermont require refiners With in rapid we from service risk markets issues. July. addition, products to to we NorthStar approval not our determinations be create decision expand hydrocrackers. refine meet sale we've the the Overall any Point, an we secondary incrementally merchant for the at that liquefaction mitigation and would New the absorbing industrial Organization from market will such fairly focus settlement end At burning requested to to be still agreement third the from to and require the territory NRC of market positive poised for marine ISO the supply held have by we International will we Public safety quarter. and on This Commission in will indicators Maritime continue standards. it The starting as to York sulfur is could economic kept trending further in suitable I Evidentiary led also expect opportunity toward . The respect we continue In in reliability early for the raise move received have ships steadily new would high our continued to that power as decision the in a growth secondary additional oil XXXX. will fuel operation Indian Utility that and business, a in process direction. meet are processing no a capacity reached units of fuel XXXX. sales and PEC's to hearings concerns Vermont are pace sulfur May pending create the and LNG in a incremental nor and longer

to of the Regulatory action The We it over the units and commitment asset to inspection is has our like April two recently Nuclear current final all for items the letter important operating of on We this finish to satisfactorily within the of confirmatory the confirmatory plant remaining refueling employees are that their work and now outage On Commission strong. to unit in of few up all expected years budget. completed scheduled. action outage Entergy an its are the letter supports. and acknowledge addressed closure X The was ANO's track refueling The cycle. of Indian being the communities been its Point and would our are and progress. serves last June. in as outage began be quarterly to retire I and final the schedule ANO's closed X, wrapped unit at support

of and we've we're Mississippi plant Award, track received have and the thorough and owned ANO business Enterprise and In Human National also reduce outage their technical for on maintenance awards training recognizing its Awards are with for STAR third refueling we've few upgrades. to operations, for crews Council the Entergy protocols and column past And the of year are this also awarded combination women's than second plant for hundred businesses. X,XXX conducted forward. and fostering list recognitions customers. honor maintenance quarter. to in projects by Entergy in outstanding a efforts impact culture. equipment improve of women normal corporations both and named procedures the XXXX processes, that working and I'd energy Society corporations Texas At we enable Grand Diversity Management of capability the programs implemented reliability XX so work consecutive result, in its year. enterprise. top by fields The end also number of America's received X Louisiana growth and efficiency to inclusive to the that the policies the world a a expect more where for educate to exit XXXX a ENERGY the we Entergy the return diverse review Resource was Excellence As going promote the recognizes Business a the and class acknowledge on oversight factor far important and like for of and Entergy to made months, at we in our Women's the we hours underwent to Gulf, barriers

increased are you likely we've the newly our in released all the a series our with particular our value reminder including scenario adopted As government's creating either provide also of Reimagined, report we're many part for Edison analysis integrated to utilities ways template integrated assessing report. integrated a and US best concurrently as the or Electric two with published degrees for a information, practices environmental, XXXX preparing a we our and on our in stakeholders. report. of as degree toward social two effort where we ESG reviewing relevant XXXX would evolving a scenario that published view disclosures detail analysis continued and framework discuss four sustainable part recently In entitled Institute's We've we with be Utility

We carbon focused our continuing on also to reduce remain footprint.

we commit utility Our first the voluntarily when US two COX to efforts nearly emissions. to stabilizing began ago were decades

of our working rates. megawatts since February evaluating ways in pursuing XXXX expand our our mentioned identified to fourth of portfolio are resources are are and that We than renewables. new existing low renewables, call maintaining capabilities in resources customer that our then we renewable more quarter while megawatts have over we we we opportunities and now complement XXX On of

have are in these while projects discussions. others of announced been Some still confidential

continue to is resources and we take Increasing one us customer renewable to further to renewables As increasingly of our and for expectations. these cost way plan energy become advantage meet efficient competitive, needs use opportunities. of

provide team opportunities such industry. company the midst to grids, are evolving automation, do rapidly as and earnings change. call, focus solutions and on customers changing term keeping battery that They're functional action data identify environment. technologies, We're utility our discussed working community directly dedicated employees developing of in of as that always distributed to and to evaluating a the new ideas, our recognize meet the impoverished I demands emerging newly created micro and last This this analytics, of is laying leverage led As we for industry the plans the foundation most long generation, a our technologies innovative electric of we in customer implementing future is planning a to by while solar, and scale all storage, mind other utility in vehicles enhance to To we've commitment, position leadership further team me. assembled solutions our on world. cross the reports

and customer Finally, earlier digital developing in with customer are welcome our businesses in to of this facing board He expertise dealing Burbank we year strong has for that analytics change. development. technology, John transformational executing has John experience data directors. strategies and product also

take at the to in ever John, you. for start start well advantage this to a delivering continued sustainable business. our that to in for outset, commitments a XXXX, on core us growth on innovations expectations we suited our had uniquely of All of makes customer success to help evolving continued meet I We're said As us keeps positioned solid path our

to results detail. this to in and you our journey at now look June on the about excited the to quarter are Drew We cover I talking more our over XX. Analyst we will forward to financial for turn Day more call

Drew Marsh

morning Good Leo. you, Thank everyone.

a As our to adjusted Utility is solid Leo and that meet and consolidated bottom said, the line term the we're first year quarter in guidance to was full track start on outlook. the our year long Other Parent operational &

Despite fund unfavorable to Let's consolidated $X.XX quarter-over-quarter. into included from Adjusted volumes increased ASU to key earnings weather We drivers. XXXX-XX unbilled strong core earnings our year well and our get straight favorable Other positive few Slide decommissioning drill the segments tax were lower and weather numbers. lower prior implementation sales X. growth both Arkansas rate the and the Drivers than rate starting on Overall, Texas, operational different due in with effects Utility Parent nuclear DWC. sale as the the were lower. trust actions on a business the & for the Entergy $X.XX down adjusted

regulatory nuclear pursuant Non-fuel also and continue higher effective as driver which to don't both Entergy to regarding payroll, combined, the Orleans including decrease. to provisions O&M we the We expenses, nuclear nuclear in significant of from We resulting Louisiana record drivers reflect implementation New ramp be full expect a up these of was regulatory tax Entergy to reform, agreements a staffing largely year. has plan. for increased our

which increases our are we AFUDC. because see Valorem and naturally franchise offset addition, partly Ad of by capital ongoing business, in in core In taxes, about

actions tax quarter though for guidance track Finally, our Louisiana our that not timing. O&M for us reflected on federal expectation actions adjusted lower the change. UPO through benefit factors including the did the were results year rate. an recently Entergy full lower combination and will FRP. the of quarter-over-quarter, Even a our to the rate expectations Rate year, approved XXXX the meet of now half in We're second included

all for the Entergy is its a customers outcome stakeholders will on this Leo good turn our elaborate As other position our mentioned during Louisiana and period. and of FRP

we're is reach holders jurisdiction, our Louisiana with largest the know you stake to agreement. from collaborative all happy As effort

on results lower EWC's $X.XX were approximately to $X.XX Slide Turning than X. first prior quarter earnings summarized year. Operational the

portion rules the types Excluding FitzPatrick, these earnings offset adjusted X trust of driver performance equity key now mark term and EWC's income the change pursuing driven refueling weak quarter to rate Lower by Today of the our operational of was for weather guidance change the by in of partly market XXXX resolution from lower the outlook, ranges value EWC investment with reductions our in million, view cash the expense quite EWC to at all decline. on from solutions X. billion earnings was partially of we spending of our combined of are cost, which XX income decommissioning and aggressively accounting engineering trust for for for the the revenue net market. or decommissioning pretax longer a The the fund, It ago. The long quarter summarized operating EWC. affirming flow year effect lower are term change UPO $XXX on shows outage and favorable tax Slides offset from we're toward federal doesn't Changes fund. nuclear EWC in the X was tax the of solutions. Slide increase overall of efforts driver balance flows March reduce value cash the and the $X ultimate scale commercial key could as anticipated that approximately and is economies our business. identifying the requires

first a we currently in But still our favorable year trust opportunities our and $XXXX Utility both that in end headwinds nuclear tax the on year. quarter million by working as the to EWC. were quarter various our planning we operational can and guidance, it's lower guidance For item of returns confident early decommissioning we're than this the consolidated the first of We're Also in unfavorable quarter expect to assumed the overcome which EWC, third year. reminder at materialize assumption.

metrics Our on credit XX. Slide shown are

we As of good few jurisdiction. earnings unprotected to ADIT our with tax [indiscernible] quarters. benefits recognize regulators on we the on metrics the tax progress value in than our in reform pressure rather tax base was customers call excess portion our reform dialogue growing accelerate The our reform credit to our shape constructive This returning the our our the short, we of the how sooner impact This than make us maintain implemented There's will also of and we're an plan return positioning Continue BBB+ better rating on mentioned last should to credit put to BaaX. be will anticipated. we rate In receive additional our temporarily uncertainty metrics. of our net credit later. that faster. the up, of optimistic current approvals originally next recovery of continues to and sooner

optimize summary, execute $X I the year. equity still plan flexibility priority that this the Analyst of under which are start to to choose end before of we In consideration issuance with Day, of equity occur to XXXX. is by a to expect to all turn the to [indiscernible] solid issued, approximately a execution. the maintaining Our and issuing we we timing before and method include form billion the The the of

through guidance credit year Our and XXXX, result better continues our us strengthen rating. maintain to to risk to our outlooks profile keep current and business us achieve our on position track full

the certify. greater Investment distributed efficient continue and tailored our of in means that will micro-grid the at ahead growth meet shortage our detail see see on improving few our increasingly and pace past and will even of the clean beyond objectives. we'll we our is as which and a layout maintaining are opportunity which no technology financial strong there look important credit that our opportunities stakeholders. generation to for plan established we've financing devices, expectations. opportunity sustain our outlook in generation all meets grid battery balance investment in current years, discuss innovative Analyst that strong changing the to The foundation Day, be anticipating, sheet. Therefore, new such deliver opportunities our resources build to solutions period. to smart we significant storage customers earnings beyond or great investment We let's Now, company change Because We of rapidly agility we Day. Analyst XXXX, to

basic affordable, team power As in continue deliver look to on customers. accessible, the the forward now, Leo Analyst questions. We tailored energy this to our mix seeing you to delivery beyond future want and available provide Day and we answer to Entergy mentioned, sustainable reliable customer is most for dialog. And the solutions

Operator

first you. Shar Instructions] question with [Operator Our Thank Pourezza from comes Guggenheim.

now is open. line Your

Shar Pourezza

Good morning, guys.

decommissioning the asking off the start So materially just quarter for Obviously performance than funds. let me by was of expectations. the ask - trust performance less on your somewhat your

kind you this what EWC exit you any positive one, and what in drove of can elaborate the process performance? with of you see a sales fundamental your Because So puts question? the on - at and do the you does that all point saw position impact view importantly cash sort more flow

Drew Marsh

the course Drew. of the drivers, Okay, Shar the the change over I the it's that just reflected think And the quarter. market - it's first equity it's question about accounting your

balance retained income, we from income gains it went year just flowing losses comprehensive through of moved sheet segment. the equity into income. that associated that with $XXX We positive change, - go field. to other last year income statement, this actually the we didn't about and not realized it rest all part as re-classed did on accounting the earnings course we of And was of in this was the as the million mark-to-market to this so And only it other have the the comprehensive and trust the year of and saw

about of going are portfolio. So and were there we some last course the de-risking of the also our we had portfolio talked management that are quarter, those on we that things activity that

loss couple compared plans, to loss may for or an EWC over regards quarter. And to a market expectations slight our very percent the anything equity plans the it the our of change towards end loss of for a with cash through overall - XXXX. doesn't So overall EWC was be our

we expect to be 'XX positive. still neutral So to 'XX

thinking that earlier statements we year, sustain sure testing fact to could make through were any might that this pressure happen we In volatility about this the see as several that these market. we things were we in could

Shar Pourezza

got seem And Okay, of just prior the had equity, something that but program. an to market that's internal language on that you thoughts based helpful. appreciate comments point or it more initiation then your you the were more shifting towards verses

So should like you tilting assume of the is of of that of So given the revolving? process is potential are sort of sort size of kind thought generally offering? what or combination we your sort how both sort a

Drew Marsh

table we options Yeah, the associated timing might the about market and are still so and the all optimizing on the incur because that. we have cost need with our with that thinking against the we

table still and of year likely be all we get the are this later market. on when the will those into things So

Shar Pourezza

guys. thanks Okay,

Leo Denault

Shar. you, Thank

Operator

you. Thank

from next Our Bank comes Dumoulin-Smith with question Merrill Lynch. Julien of America

now Your is line open.

Julien Dumoulin-Smith

good Hey morning.

Leo Denault

morning Julien. Good

Julien Dumoulin-Smith

so sort spending. Also, is if the I settlement may a into preempt the and with affairs suppose there in Day, of was South delve clearly bit state in some I with I Can integration the of capital little North I plans that the chat to sort event briefly, there discuss quarter Hey, it transmission that it capital transpired. itself wanted to MISO of we about and an on could. respect and respect to in discussion of wanted the Louisiana budgeting around but and own your of acknowledge you Analyst that process

Rod West

of MTEP plays the Louisiana a this about Rod. Louisiana settlement certainly 'XX in MISO consistent utility billion 'XX is planning $X.X that. XXX beyond. the and during Julien and includes the the along processes an are is with business and in of of year period One, through in much in expectation for The staying significance transmission alone. we with FRP of our the that Part reset capital

the and earnings with our fueled capital expectations out with is consistent be the what part MISO. so opportunity CapEx by plan process the our of around in growth And in comes will MTEP

Julien Dumoulin-Smith

clear limitations to respect events. it, anything on the the process be MTEP South in that's the Just North this is some winter some with there about suppose capacity of I there shifted to

Rod West

No.

Julien Dumoulin-Smith

well? and consistent AXX is X.X with excellent billion as Okay, the the

Rod West

When you XXX? say the

Julien Dumoulin-Smith

'XX The to plan. average capital 'XX preliminary transmission

Rod West

Yes, you. thank

Julien Dumoulin-Smith

thank you. Excellent,

Rod West

Julien. Thanks,

Operator

Thank you.

next from Bank. question Our with Deutsche comes Jonathan Arnold

line now Your open. is

Jonathan Arnold

Hi, good morning guys.

Leo Denault

Jonathan. morning, Good

Jonathan Arnold

- so. I you if this, I apologies and have misheard Just, thought say may heard I

XX, of billion? approximately As the decommissioning funds were March $X

Drew Marsh

correct. That's

Jonathan Arnold

us at guessing you Could what might question you basis Slide to on funding where the I'm And is - X.X, you remind can not help escalated when means? that say as be up the escalated the XX, XXXX. same the adds us that just

Drew Marsh

Slide That's using I a the on XX. in that's where believe But Slide the X% March growth rate. there has XX look, XX, there's NDT you to think I want of has in that the appendix, - Slide on different the balances as

Jonathan Arnold

the so Okay, that's one.

Drew Marsh

Correct.

Jonathan Arnold

the? as right basis same the on not that's But

Drew Marsh

No, escalated, the other using that's funding - page. NRC formulas the no the the on

Jonathan Arnold

wanted not get just this I that fine; That's straight. to really Thank you.

Drew Marsh

problem. No

Operator

Thank you.

question Our comes with Citi from Mehta Group. Praful next

Your line is open. now

Praful Mehta

thanks. guys Hi

to given in it in lower is So end, know guidance? terms at where done terms you see exactly just of you relative on not talk the do earnings, QX of now yourself were some there your firstly you're guidance? of tracking I on where XXXX EPS kind are

Drew Marsh

Yeah, that's a good question Praful.

when I think current about early of in lot mean middle the expecting the falls be basis we levels about are middle to we so trust point. a in to I expecting are that on [ph]. the be this have manage to operational year, in we volatility at decommissioning time, it the and in it's this

any there For right & are we Utility quarter, on Parent there. change wouldn't Other, track so be as first of

Praful Mehta

are it helpful then you meaningful that's and on look planned. great, refunds, clearly this originally they and had secondly Okay than them DTL like doing sooner unprotected looks you

growth. going but So just that be impacts negative, the the rate side be from secondly, credit that are you of side bit. I'm your quickly, seeing will just that's on a little to the flow to recover and And cash pretty then understand positive side, you're a base from probably on that assuming helping that the that touch a

can help of deferred - us just you of the the of refund decommissioning I'm tax the If sorry implications unprotected income kind impacts? understand

Drew Marsh

to slower regards to the now on last faster. credit a cash and and it's little little metrics in be pace we anticipating back so so customers Sure, are flowing how would quarter when the unprotected we pay, and ADIT a excess the talked the fast

there expense, which is item tax be to income be and an be the in so are that experiencing the and from door less basis. will we flow talking statement, the but income - are longer about that a is more getting the item the would revenue lower also that's quarter would So that debt, be that we metrics be the cash flow statement the talked XX% metrics cash work into will the effect, on which last way to like going be measures on expectation perspective we about will a income a term FFO we cash non so will offset

of Now the to bit we level will ramp we quicker so are unprotected it that that in expecting XXXX, return recover lower by little because increase. than ADIT a excess the of expect we and this above process, as be from expect return base more to upfront, be but in is would haven't a rate customers - back regulatory our excess And the to but ADIT. on we rate that unprotected net and are finished as base perspective, much we

to billion by and with that. the still net XXXX. by protected both we be of the so ADIT, excess the And case that base for talked about expect unprotected last call the increased about of for the rate opportunity the on return We way $X associated

Praful Mehta

thanks helpful, Super Drew.

Drew Marsh

Thank Praful. you,

Operator

Thank you.

Our question Wolfe Steve Research. Fleishman with comes next from

is line now Your open.

Steve Fleishman

that to, the just this that both are clarifications, and good order thanks. overall & you is for on for Parent Yeah, tracking Other? two the on Utility I comment range company guess middle year the

Rod West

go is I'll it ahead with for Steve, one Yes, that true.

have that So as with. & several we're begin operational yeah can we as manage but think we levels pull track to on Other, right we spot, and the Utility to far Parent

Steve Fleishman

in the get and and comments terms like. Okay, of about just on thinking then back ADIT the

agencies. metrics kind the this of or XXXX, to issuance fine get that upfront one sooner of So, for don't that for you kind does of a fact if the manage and have the kind you incent degree is to lower The it's by then you care just year? its do the lower equity They metrics, there done get consistency. to

Drew Marsh

this Drew. is so Yeah,

of trying access match are excess capital the So, of and were up in we the the return it to is our markets terms that in timing some ADIT forward equity overall to and of moving way.

So it's forward are that the a markets bit. we equity there. aware to agencies access certainly it rating move going capital But to little are the going

Utility progress that's Looking EWC of improving. profile and at factors like on that within regulatory business the other changing environment a our at number positive the as plus risk our

of So which we with of cash are the consideration, of a return of is only we up number into think flows. I making timing things equity those the taking one the match sure that

Steve Fleishman

high I just Okay on - and of is And discussion of mean term are a sounds like and and generation obviously you it at kind what that obviously to like that. it. having are cover the Is kind already better then the of you trying with in place ahead regulatory kind more the long is? - on technology in the role a get of experience things just level pioneer plan on customer and mix then what the changes continue to structures doing to

Leo Denault

with of getting opportunities opportunities bottom transmission that major the in improvement. for to a the line kind years its and of really started some distribution and we now Steve, more you Yes, the system XX as see way entire generation respects now, in worked have over I would been say we of distribution in into start generation we it's have. is technological into a molding some are And the

an avoiding replace Orleans got will Center The deactivate on come the into now Charles, Parish power renewables Montgomery we we at station. County, one generation are what talked Lake that XXXX would that comes forward reliability have large But and they necessarily you about as be not a transmission be line with But other that because of a - of things them that in generation as well, generation. line. on they the competitive market generations, opportunities as certainly some come Charles, to St. in so ageing best generation would play megawatts going generation other are potentially continue both are have we I replace, Washington hand they also ageing more with types to with of we new updating right renewables we of in to Energy as and that terms fleet a are investment. have avoiding that New localized both go generation So the just distribution

technological cost us to liability customers the better other in So things to allow their grade improve that of plus lower and improvements and operate solutions. them will automation or pursue get closer kinds we distribution those that could

we've From of undergoing. we the you're front, investments to we've that regulators just in what for as into us shrink the opportunity is for that right, over up particular outline the need match been regulatory of done years process taken the last continuation All five that to a make to will the marvel course investments. regulatory we've a types of that benefits to allow customer and we the our provide the see

have really in we new was FRP, what of done and our in source for lag well dollars space. with customers big a regulatory lines big what the Louisiana up with example, for the a So source transmission transmission in of

the bit So covered making. now more well, same get really we're we bucket mix to little we've regulatory had with AMI the a transmission of the closely and generation in with type already investments aligned got

can efficient work we our So technological just and the customers regulators system sure you're model and all benefit that our the right across make trying with is get. we improved future most on functions regulatory advancements to the to that

Steve Fleishman

thank you. great, Okay,

Operator

you. Our Byrd Thank Morgan [Operator next Instructions] from with comes question Stephen Stanley.

now is open. line Your

Stephen Byrd

morning. good Hi,

Drew Marsh

morning Good Stephen.

Stephen Byrd

about just - think trajectory get level just trajectory and really just sort from the late improvements, on of the co-operations response that touch terms to your and are how nuclear base operations here. high of you in of operational Wanted

the overtime could, the progress had You in improvements terms [indiscernible]. of operation

Leo Denault

effort are expected Stephen, areas see bottom-line nuclear in to the seeing in, is continuing a to the of we progress. let and are we fleet I'll our I'll our spend resources we on progress start, Chris significant and but jump

that hired As I the few think of equipment we need couple years Chris in outlined, when new we get. first get to began, it's a outages that facility the going the fleet, that Drew up a XXXX in in year high in mentioned that at we are nuclear I we in say the progress But showed the so the first that expected. people expected we we would place But we to way making to quarter. a and take last level

Chris Bakken

Leo? just follow-up This is that I Chris. to Can

where the in are to We terms be expected of the plan. execution we of

the regulatory plan. day, year before the We've you significant return period we we track start the three over to believe As at we of second see looking we see fueling as last to on to relations that. improvement, from using to with investor And the the NOC the normal will at are the outline the outages remarks did been two do the safety to quarter. we and with improve site you mentioned Leo, the end modules and reliability expect your of at in back perspective opportunities

So, we've progress. good been making

Stephen Byrd

develop, quite to be potential as is should filing of request helpful. of didn't projects, make that's more you to you are specifics XXXXMW its sort it to of think you smaller around some likely mentioned is prepared relatively projects or over very expect result progressing? it a where words in Okay, opportunities? you in if remarks. where into is a number your time just mentioned get opportunity how the fairly a with other a likely there's this over momentum the and And In clunky material those just getting lot, renewables on shifting filing we other possible projects total should proposing been Without a fairly we something improving

Leo Denault

the But, out mentioned the up of fairly show they outside I in obviously would of which terms as a we've might some on up point PPAs of in XXXX announced in do guess, those this will that some discussion a couple negotiating of call. of going that see things At what ratable that we I at the couple of outlooks we were right are these are up is show got now, provided, there we - are of that The which say, are in some as of end last beyond to projects, point time. the dollars time and would you in midst of RFPs and that owned you end kind at most the or with majority when the frame. being

two well. fronts last it's decent were projects be transmission locate question a but can with of the is they they to just that continue evaluate on and new as the as objective how then make Some the can put one we our you which size, generation also I is as given and of to together a earlier but could mentioned would resources, be sense nature speed these

next are about excited years the as how lot well. over it the cost has of we do curves So, with opportunity, to the move few

Stephen Byrd

I all That's Thank have. you.

Chris Bakken

Thank you.

Operator

Thank you.

from Michael Our next Sachs. with comes question Lapides Goldman

open. line Your now is

Michael Lapides

you 'XX do what's like, in Hey then the and than my and you taking in Utility up guidance? the for nuclear, XXXX. do imbedded Utility guys, for thanks being questions. looks guidance, in the trajectory general, on level think O&M how an And 'XX what more quickly anticipate inflationary Real the [indiscernible] about

Drew Marsh

consistent at we gap on XXXX think the is that I this earlier Michael to close Yeah, we mentioned some opportunities XX. are March Drew. so the with through I So are performance still help looking in NDT expectations. our

And are expectations that, we guidance through of as there's so don't really of of I some a think walking now but much in our change.

mentioned you over changes this Looking of nuclear, around the we're most - Leo year, in guess first year, people a effect that the going well, hired question forward to I acute still payroll quarter. the XXXX specifically last hire had as we some

we have year. that lessen it the overall have the we of will the though over course had it's O&M the few even during of nuclear out year last next that we even some effect spending larger, will also quarters, the projects but for so And

XXXX to comparable be the will it year. So, the end by of

'XX at this and nothing under dramatic we of think for growth, O&M have I 'XX terms overall in point. forward Looking inflation expectations

Michael Lapides

accumulated make Got of outflow kind near deferred it, debt, you I what longer cash I help sure understand offsets - how I to to it. offset through FFO can can what the the return you makes me coming walk might it kind but that accounting of the taxes, is? me back get you what to term outflow, want understand help through but can around walk term? hurts the it the me cash and of And income excess

Drew Marsh

we I $X billion our FFO just well effect stop after giving measure. will finish the being Sure, in back that

revenue, number going FFO time. is extent you're months. that XX that depressed what seeing for out, five back that net a lower we be that shaping see and giving to if going period years to the while the are lengthen would give it's over is giving that money you four, we of way you're up with back So are next back, you The it

depressed time the should be that effect we the than by the for fee but planning, we so get may up XXXX, away. unprotected are FFO more So go the

So your should FFO to debt improve. measure

Michael Lapides

industrial a last and don't have adding both of Got Rod guys the I related the ton Louisiana process then occurring Leo makes one sense and demand and question, you in know giving one to Texas, of in the which of added but it four in that's generation a quarter. or lot pet-chem

newer or curious, repairing? years to both I'm of higher Mississippi, Just units either And or Arkansas fire beyond are. are there sufficient thinking states cheap I'm next generations conventional there opportunities kind as for this, technology, you are know newer that some look technologies what if the gas few in over thinking you be may at additions as aren't

unit Texas. Arkansas pollution drivers trying future through in rate going Louisiana with you as You cycle think coal after still the about I'm just growth right to and now of those two a of have controls. through the going significant states on sizeable based that are kind

Rod West

of all that majority years, If ten we've we the and and But existing you same you last generation do that course the mentioned they generation been hand think with of have. efficiencies the have acquired to it's Mississippi our suite have The what strategy. age Arkansas. has actually been in about the the over moves generation Michael

we as cost, units. those So environmentally higher less friendly deactivate sufficient, less

a that et we We replacing wells [indiscernible] Mile Nine Montgomery X Lake of or the acquired units. combination things Charles, with of acquired be St. like cetera. Union list the it long Charles, would transferring, already those are new What County,

had the - think in well, asked is on up, on those other - call So last first you all gas the competitive do those on has the the the generation plants you jurisdictions jurisdictions cetera, coal - become that we we be one depending identified of very, road so as for et that need the shown with have those down new need. yes. other and very with because I up didn't in certainly And our somebody And fact mentioned the that as what same answer that dollars in just as of there will seen Orleans, about resources quarter generation add - happens show coal across Louisiana the short need and do environmental regulations We New see over new not jurisdictions generating well. Texas. and the you've of Arkansas Mississippi us as last decade

looking at be have been will of forward Going of announced. combination projects gas, a but new the already also it probably some

in PPA, resource. that's renewable a For Arkansas project or example

we competitors. should as some battery see that show at things to in become sorts they So storage point two of renewable those in start up time

So, yes with and we'll there. resources are well generating as those end up leads yeah ageing new

Michael Lapides

appreciated much and Leo you, Thank it. guys. got Okay,

Rod West

Thank you.

Operator

Thank you.

from from Patterson comes question Glenrock next Our Paul Associates.

now Your is line open.

Paul Patterson

enough that NRC plant. Just to decommission indicating letter they are Jonathan's that there to believe there how follow-up the sent that feel morning, them decommissioning, with on basically the question the and ability you? with comfortable Good was information respect very quickly a to on make Shar didn't to was [indiscernible]

that that decommissioning else guys seem of information terms in the you today little considering just fine. fund have everything surprising it's and a in provided the Given general,

elaborate what how to resolved? be issue you going there that's can a on So and bit the little

Drew Marsh

it's that think part Hey I yeah, our are point. this of is expectation back additional the and normal the Vermont didn't normal that Paul, we NorthStar so case think see that particular it's requests we at part Yankee of - and that that is concerned NRC anything in forth about I processes, we for it Drew. That in is information. responded are I And guess probably to and in - just

Paul Patterson

clarify NorthStar just because taking you what than just of that mean funding, with Is guess? longer transaction a I this, it been and that first is I are enough so, has giving dealing to place here all Okay, decommissioning it's information.

Drew Marsh

Well, normal page on the Jonathan formulaic. the like referenced that saw in more and those you the are course of business XX, filings

go dig it. are a into expect why And specific the and doing so when are transaction we totally we going understand they deeper much not they buyer and the to through of financials that

nature. its like that, filings we in so I normal which said process very are And compared of will formulaic the to annual part normal consider

Paul Patterson

lot. thanks Okay, a

Drew Marsh

No problem.

Operator

with And our question Morningstar you. final from comes Charles Fishman Research. Thank

now Your is line open.

Charles Fishman

Thank you.

more place that site so also slide. you you which question believe the decision a or Yankee, shut specific else, point new after pursue and a process? type I whether Just Indian at slide study, on that is solution Vermont one NorthStar XX, something one The takes a make that is down and at is unit Point the

Drew Marsh

specific you're site specific studies can site and you and match overall trust plant of the couple of the the give the that a so funded. a to Sure, down in facility that happen adequately you're study said, cost ways. you sure against Like make will if up shutting assess

think requirements. to ongoing Charles, this on the study during needed the Paul didn't I or the But life specific basis but think end If these the if the the are assessments often, funding doesn't operations end assessment, there of would if an you pointing site having formulaic do do typically you that that year a that you get happen also when you do and of ways NRC you the it the of out do you're see at normal can you you meet I at as unit. could was all in the formulaic very

Charles Fishman

the process NorthStar then also make to and or Okay it's else. of decision something pursue, whether what

Drew Marsh

normal it's with is going we more through what to assessment page NorthStar, than are stuff. almost safe Page would where you're go do I the like seeing a environment think sale relative if rapidly a but it I you an you separate decommission - XX store mean like process environment or if assets a or Sure, the of more to you on would you're XX.

Charles Fishman

Thank helpful. much. it. very That you got Okay, was

Drew Marsh

you. Thank

Operator

back queue, Thank the Borde like question to you. for to over That's turn so conference closing remarks. last I'd Mr. in our

David Borde

Thank and you, for everyone morning. James thanks to this participating

we to to you close, for are statements. website release refer reminding and and we regulation compliance Harbor Safe our G Before

existed provide and due is about filing in of XX-Q provides occur date accordance Form date Events the more on to financial of disclosures May statements. balance SEC that on the to Report our conditions statements sheet Annual Our the XX-Q details that our additional financial at in XX the our and that would accounting be accepted with reflected of evidence generally principles. prior

maintain web we which and milestones key of page updates a proceedings on called provides important of our other website regulatory Finally, as investor regulatory information, relations execution. strategic and a part remainder as

this page And may be rely should material considered of relevant concludes call. Some this all our information company this you. on information. exclusively we for Thank information

Operator

much gentlemen does conclude you. today's you for participation. Thank and Ladies Thank that conference. very

all day. may You a Have wonderful disconnect.

Entergy (ETR) 25 Apr 182018 Q1 Earnings call transcript